TY - JOUR
AU - Andres,Javier
AU - Hernando,Ignacio
TI - Does Inflation Harm Economic Growth? Evidence for the OECD
JF - National Bureau of Economic Research Working Paper Series
VL - No. 6062
PY - 1997
Y2 - June 1997
DO - 10.3386/w6062
UR - http://www.nber.org/papers/w6062
L1 - http://www.nber.org/papers/w6062.pdf
N1 - Author contact info:
Javier Andrés
Ignacio Hernando
M1 - published as Javier Andrés, Ignacio Hernando. "Does Inflation Harm Economic Growth? Evidence from the OECD," in Martin Feldstein, editor, "The Costs and Benefits of Price Stability" University of Chicago Press (1999)
M2 - featured in NBER digest on 1997-12-01
AB - The purpose of this paper is to study the correlation among growth and inflation at the OECD level, within the framework of the so-called convergence equations, and to discuss whether this correlation withstands a number of improvements in the empirical models, which try to address the most common criticisms of this evidence. The main findings are the following: 1) the negative correlation among growth and inflation is not explained by the experience of high-inflation economies; 2) the estimated costs of inflation are still significant once country-specific effects are allowed for in the empirical model; and 3) the observed correlation cannot be dismissed on the grounds of reverse causation (from GDP to inflation).
ER -